Mortage loan approval process

[chrisosa]

I love to helping people that why I share a article about mortage loan approval process the reason I doing this I was in financial trouble few month ago and people was not willing to help me I think if I share this article with people they will be able to share they story and we can build a community of financial independence. Everyone of us want to live financial indepenedence but without a help from other people that impossible!

If you want to speed up your application process you need to prepare few items . You need to visit mortage lender's office and ask question so prepare require documentation as well question that you will ask before apply for a mortage! It is very good idea if you get a preaprove (pre-qualification) for a home mortage this will save you inquire on your credit history as well time.

It is good idea to show them your FICO score before you apply for a home loan this way you can save inquire and time , I went to local branch to Bank of America and show them my FIco Credit score and they look at me like crazy.. they say they can pull out my credit score from computer I say but this will make another inquire on my credit history and they respond you are smart person and as you see if they know you are smart they will not play with you!

After you meet with a lender, you need to know what kind of mortage you want to take ( of course you need to ask a lender what they offer) and have general idea if you qualify for the size and type of loan you want. As I say if youf get preapprove for your loan this will speed up the process!

The lender should let you know if you qualify for the loan. If you are denied a home loan, the lender must explain the reasons but mostly it is because of low credit score, low income or both. Most of the time application process takes between 1-6 weeks depend on lender and witch bank issue those lend. If it is big bank such as bank of america, Citi bank , Wachovia they are pretty fast when issuing a loan remeber this dont take a sup-prime mortage because it will take you life to pay it off!

What happens after I have applied for a mortgage loan?

As I say it usually takes a lender between 1-6 weeks to complete the evaluation of your application but it depend on your credit score if you have good credit score no doubt they will speed up the process because less verification is requirement and remeber this IT IS NOT unusual for the mortgage lender to ask for more information once the application has been submitted becuase if they ask that mean they are not experience lender. All experience lender know exactly what information they need to complete application process.

Once all the information has been verified, the lender will call you to let you know the outcome of your application, If the loan is approved, a closing date is set up and you can lock interest rate for 20 days mean if interest rate change rapidly ( unexpected increase Federal interest rate) you still will pay fixed amonth of interest. this usually cost you$200 dollars to lock up you interest rate! so lender will review the closing process with you. And after closing, you'll be able to move into your new home.

How are pre-qualifying and pre-approval different?

Pre-qualification is an informal way to see how much you may be able to borrow depend on your credit score, and income. You can be "pre-qualified" over the phone with no paperwork by telling a lender your income, your long-term debts, and how large a down payment you can afford. Without any obligation, this helps you figure of the amount you may have available to spend on a house.

Pre-approval is a lender's actual commitment to lend to you. It involves assembling your financial records and going through a preliminary approval process. Pre-approval gives you a definite idea of what you can afford and shows sellers that you are serious about buying. The process locks you into the loan.


So you need to know when you meet with your mortage lender to bring a copy of requirement document those information is require to verify your income and long term debts. Those document mostly all lender require to bring when you came to mortgage lender office:


Your bank account numbers and the address of your bank branch, along with checking and savings account statements for the previous 2-3 months if possible bring up to 6 month this is look better in eyes of lender!


Pay stubs, W-2 withholding forms, tax returns for last two years, or other proof of employment and income verification , if you are self employment you also need to bring a schedule C tax return for business.

Credit card bills for the past few billing periods I will say 6 month is enough, you need to disclosure revolving debt such as credit card, ( both charge and revoling) student loan or private loan and any other loan you currently have with any bank!

I think that all you can bring if you have any futures question ask on this forum I am here everyday helping people get out of debt, refinancing, geting home equity loans application processing, ( NO I DONT LEND A MONEY) nor I dont charge money, all you have to do just post a question! free of charge!

[Batman]

When Lender Pre-approve or Pre-Qualify you for your home loan they check your credit score not only one time but they look to give you a good interest rate and check give your profile to many loans agency this way they know what interest rate competition give you and they give you the lowest of course to attract you to take a home loan, or do refinancing or taking a home equity!

[pranith]

thanks for your article its is most helpful for me to know about the moratage loan.